Linking PAN with Aadhaar for Income Tax Filing

Linking PAN with Aadhar is considered one of the biggest announcements made by the Treasury Department in recent times. The Government, under the Finance Act of 2017, has compelled taxpayers to quote Aadhaar or the registration ID of the Aadhaar application form to file income tax returns. The Revenue Department has launched the Aadhaar Liaison Center with a Permanent Account Number (PAN). It should be noted to taxpayers that linking PAN with Aadhar is a mandatory process for filing income tax returns.

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1. Why should PAN be linked to Aadhaar?

Linking the PAN to the Aadhar card will be a game changer for the Tax Department and help increase the filing of income tax returns. As the Income Tax Act is large, the introduction of Income Tax is often a complicated process and part of the problem can be reduced if Aadhaar and PAN are connected. Once the two IDs have been linked, taxpayers will be exempted from the responsibility of submitting an IT permit to the Tax Department, as the identity of the applicant will be verified through the Aadhaar process. As a result, many problems will be removed from taxpayers and the system will also reduce the costs incurred by the Department of Revenue in compliance areas and act as hard to obtain hard copy Returns and adapt them to e-filed returns. Therefore, linking the PAN card to Aadhar will make the process easier for taxpayers and the Government.

2. Procedure to Link PAN with Aadhaar Card

    There is no need to sign in or register on the E-filing website. This facility can be used by anyone to connect their Aadhaar to PAN. After responding to taxpayers' complaints about difficulties in linking PAN and Aadhaar as their names do not match both systems (for example, names with initials in one and extended initials in another), the Department has come up with a simpler solution as part of the 2017 budget.

  • Taxpayers can go to the Income Tax website and click on the link on the left pane which states ‘Link Aadhaar’, as shown below.
  • Step 1 - Go to Income Tax Website
    Illustration: Step 1 – Go to Income Tax Website

  • After clicking on Link Aadhaar, a new page will be opened where you think you need to provide the PAN, Aadhaar card number. Please enter a name as provided on the Aadhaar card. One should avoid spelling mistakes. After filling in the details, click Submit.
  • Update Aadhaar Information
    Step 2: Update Aadhaar Information

    . After verification from UIDAI, the connection will be confirmed and will show the Aadhaar-PAN connection successfully completed.

    Step 3: Confirmation is received

    If there is a slight difference in the name of Aadhaar given by man in comparison in real details onAadhaar, One Time Password (Aadhaar OTP) will be sent to a mobile phone registered with Aadhaar, such as a media release issued by the Department of Taxation. The taxpayers should ensure that the date of birth and gender in PAN and Aadhaar are exactly the same. In rare cases where Aadhaar name is completely different from name in PAN database, linking would fail and the taxpayer will be prompted to change the name in either the Aadhaar or PAN database before linking.

    Taxpayers have been asked by the Department of Revenue to make use of the simplified the process of completing the connection of Aadhaar and PAN immediately. This will be useful in E-Verification for Tax rebates using OTP sent to their mobile phone registered with AadhaarSo far more than 1.18 crore numbers of Aadhaar are connected to the PAN database, report India's Press Trust said.

3. Mismatch between PAN and Aadhaar Information

In the event of a name or other information discrepancy between PAN or Aadhaar, a request for amendment may be made to UIDAI or the Tax Department. This means that either the details in your Aadhaar will change or the details in your PAN will change. In the case of Aadhaar, only your name, date of birth, your residential address etc. In other words, all other details besides your biometric data can be changed on your Aadhaar card. If you request a change on your PAN card, there is no biometric information and therefore, only the details a person can see on the card can be changed. In any case, one must provide official documents that will provide the exact details that need to be reprinted on any card. know more about PAN name change

4. Document Required for Linking PAN with Aadhaar

    No document required to connect PAN to Aadhaar. All it takes is the details (non-biometric) on the Aadhaar card and PAN Card to be a perfect match. Only if they are the same, where the observer may request a link or otherwise, the person must have the information processed and corrected before the taxpayer connects them both. Therefore, before starting the process, the thinker should ensure that the PAN and Aadhaar cards will have the following information in the same way:

  • Name
  • Gender
  • Birth Date

Frequently Asked Questions

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What will happen if I'll not link my PAN with Aadhaar by 30th June 2021?

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According to the latest updates if you do not connect your PAN with Aadhaar by 30 June 2021, a fine of up to Rs 1000 / - will be charged to 234H and will apply. The government has not yet clarified anything related to the renewal of the PAN after linking it to aadhaar. As no detailed explanation from the government was obtained as to what the non-functioning PAN would be as a result. We can say that the PAN administrator will not be able to enter any financial transactions that require PAN details, once they are no longer working.


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What is PAN card and how to obtain it ?

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Permanent Account Number also referred as PAN, is allotted to the taxpayers by the Income tax Department of India. It serves as a proof of identity. You can obtain it through the website of TIN (Tax Information Network)


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What is Aadhaar Card and how to obtain it?

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Aadhaar is one of the unique symbols presented by the union government. Embedded with your demographic (Name, address, etc.) and biometric details (fingerprints, iris pattern and photo). It can be obtained by UIDAI (Unique Identification Authority of India).


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What is the purpose of Linking PAN and Aadhaar ?

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    The purpose of this step taken by government is three fold:

  1. It will restrict Multiple PAN card users
  2. It will prevent tax evasion.
  3. It will simplify the e-filing process of Income tax return.


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Is it mandatory for everyone to link their Aadhaar card with their PAN Card?

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Yes, as per the judgement of Supreme court (SC) passed on 26th September 2018 , linking must be done by everyone i.e. Individuals, HUFs, Companies, Firms etc. Linking has to be done even if the income is below taxable limit. Initially, Linking was needed to be done before December 31, 2017. However, to facilitate the process of linking, the last date for linking of Aadhaar with PAN was extended to 30/06/2018 and then to 31/03/2019. But now, as per the recent CBDT circular, it has been further extended till 30th September 2019.


CEO Krishna Gopal

Krishna Gopal Varshney co-founder & CEO of Myitronline.com. Myitronline is amongst the top emerging startups of Asia and authorized ERI by the Income Tax Department. A dedicated and tireless Expert Service Provider for the clients seeking tax filing assistance and all other essential requirements associated with Business/Professional establishment. Connect to us and let us give the Best Support to make you a Success. ”

Krishna Gopal Varshney
Co-founder & CEO